The estimated £2.2 billion ($2.9 billion) takeover of Amec Foster Wheeler by Wood Group was completed yesterday, following the sale of Amec’s UK upstream oil and gas business to Australia’s Worley Parsons.
The proposed sale was offered by Amec and Wood Group as a remedy to the UK competition watchdog CMA’s concerns for operations in the UK Continental Shelf. The CMA decided the proposal was sufficient to clear the Wood Group’s acquisition of Amec last month.
Wood Group CEO Robin Watson referred to the acquisition as “transformational,” adding: “We become a business of significant scale and enhanced capability delivering services across a broader range of geographies and sectors, differentiated by the quality of our people, enabling technology and know-how.”
The executive said integration planning throughout the company is “well progressed” and teams will now focus on implementing a best of approach for the wider organization. No job losses have been anticipated in northeast Scotland as a result of the deal.
WorleyParsons will pay A$303 million ($235 million) for the assets, which give it entry into the UK North Sea market. The company expects the acquisition to reduce its net debt and be accretive to the group’s earnings per share in the first year of ownership.